ED unfreezes WazirX bank accounts; No association with any accused fintech entities, says company | The Financial Express

ED unfreezes WazirX bank accounts; No association with any accused fintech entities, says company

The relationship between Binance and WazirX turned sour after the Enforcement Directorate (ED) froze bank balances to the tune of Rs 64.67 crore of the directors of Zanmai on August 5, 2022.

ED unfreezes WazirX bank accounts; No association with any accused fintech entities, says company
WazirX clarified that most of the users whose information was sought by ED were already identified as suspicious by WazirX internally and were blocked in 2020-2021.

After days of investigations, the Directorate of Enforcement (ED)  has unfrozen WazirX bank accounts and the company can continue its banking operations as usual, WazirX informed on Monday.

Source: Twitter

Taking it to Twitter, WazirX said, “The ED has unfrozen the bank accounts of WazirX. In cooperation with investigators, WazirX provided all necessary details and documents of the alleged accused companies that used the WazirX platform.”

The company further clarified that it has no association with any of the alleged accused fintech and instant loan app entities, ” which appear to be the subject of ED investigation, and is carrying out the KYC, AML checks despite having no legal obligation to do so.”

Also Read: Binance battle with WazirX escalates

Furthermore, WazirX clarified that most of the users whose information was sought by ED were already identified as suspicious by WazirX internally and were blocked in 2020-2021. 

Earlier, On August 10, Zanmai Labs which is co-operated by Binance, WazirX clarified that the ED appears to be investigating the transactions of certain users and Zanmai Labs has “no affiliation to such users and is unaware about the purpose of their transactions.”

The relationship between Binance and WazirX turned sour after the Enforcement Directorate (ED) froze bank balances to the tune of Rs 64.67 crore of the directors of Zanmai on August 5, 2022. The public dispute has left about 15 million registered users on the platforms stranded. It is believed that Zanmai Labs, run by Nischal Shetty and other founders, will opt for a legal route. This sent shockwaves to the market especially, when Binance announced its acquisition of WazirX, in a blog post on November 21, 2019. In response to this, Changpeng Zhao, CEO, of Binance, through a series of tweets, officially clarified that his company never completed the acquisition of WazirX.

Also Read: Binance clears its position; removes off-chain fund transfer with WazirX

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First published on: 12-09-2022 at 13:02 IST